The European Investment Bank (EIB) lends another EUR 50 million for the rehabilitation of roads in Bosnia-Herzegovina, following a loan of EUR 40 m signed in 2006 for the rehabilitation of the road network in Republika Srpska. Similarly to that operation, the new loan will support pavement rehabilitation, overlays and strengthening and ancillary works on the main and regional road network in the Federation of Bosnia and Herzegovina.
As with the earlier operation in Republika Srpska, the selection of the road sections (some 109 sections totaling to 1,184 km) covered by this project has been made an on the basis of the evaluation of the entire road network of the Federation of Bosnia and Herzegovina taking into account the traffic volumes and condition of the roads.
The EIB loans will finance 50% of the total costs of the two projects (in Republika Srpska and in the Federation) that are expected to be co-financed by the European Bank for Reconstruction and Development and the World Bank, providing another example of the good coordination and cooperation among these international financial institutions in the Western Balkans.
The task of the EIB, the European Union's bank promoting European objectives, is to contribute to the integration, balanced development and economic and social cohesion of the Member States by financing sound investment. Outside the Union, the EIB implements the financial components of agreements concluded under European development aid and cooperation policies.
EIB financing in Bosnia and Herzegovina has exceeded EUR 600 million since 2000, including the current loan. In the Western Balkans countries, the financing operations of the EIB aim at facilitating the integration process into the European Union. In addition, EIB support helps to foster political and economic reform and encourages social reconciliation in this region. Since 1995, the EIB has provided loans in the Western Balkans amounting to more than EUR 2.2 billion.